LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 30, 1997
TO: Honorable Bob Bullock IN RE: Senate Bill No. 1539, As Passed 2nd House
Lieutenant Governor West
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB1539 ( Relating
to the regulation of certain facilities, homes, and agencies
that provide child care and of child-care administrators; providing
penalties.) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB1539-As Passed 2nd House
Implementing the provisions of the bill would result in a net
positive impact of $1,056,302 to General Revenue Related Funds
through the biennium ending August 31, 1999.
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Fiscal Analysis
The bill would require the Department of Protective and Regulatory
Services (PRS) to establish a mandatory listing program for
small family homes that provide regular child-care for compensation
in the caretaker's own residence. It would also require PRS
to charge each small family home a $20 annual listing fee.
The
bill would require PRS to conduct background and criminal history
checks on certain individuals associated with regulated child-care
facilities and family homes. The checks would be required at
application and at least once every 24 months after licensure,
listing, or registration. Each check would include a search
of child abuse and neglect reports maintained by PRS, and a
search of criminal history record information made available
by the Department of Public Safety or another criminal justice
agency. Child-care providers would be required to pay a background
and criminal history check fee that does not exceed the department's
administrative costs.
The effective date for the bill would
be September 1, 1997.
Methodolgy
It is assumed that implementation of the provision requiring
small family homes to list with the department would cause the
number of regulated family homes to rise by 1,250 in 1998 and
1,250 in 1999. It is also assumed that the number of listed
family homes would remain constant in the year 2000 and beyond.
The $20 annual listing fee would result in a gain of $25,000
in fiscal year 1998 and $50,000 each year thereafter for the
General Revenue Fund.
PRS reports that it conducted nearly
48,000 background and criminal history checks on individuals
associated with regulated child-care facilities and family homes
in fiscal year 1996. These checks were conducted at no cost
to the facility or home. It is assumed that implementation
of the provision requiring facilities and homes to pay a background
and criminal history check fee would generate new revenue with
no additional costs.
It is assumed that implementation of
the provision requiring PRS to conduct background and criminal
history checks at least once every 24 months would increase
the department's workload by more than 70,000 checks per year.
PRS would need additional FTE positions to accommodate the
new workload. First year costs and revenues have been reduced
by 25% to give the department time to adopt rules and phase-in
the new program.
It is assumed that PRS would charge a fee
to recover the administrative costs associated with the background
and criminal history check requirement. These would include
staffing costs, a $1 fee for DPS criminal history searches,
and a $24 fee for FBI fingerprint searches (which would be conducted
on a very small number of individuals).
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable Probable Revenue Change in Number
Savings/(Cost) Gain/(Loss) from of State
from General General Revenue Employees from
Revenue Fund Fund FY 1997
0001 0001
1998 ($768,628) $1,284,279 17.2
1998 (918,892) 1,459,543 22.7
2000 (887,240) 1,427,891 22.7
2001 (887,240) 1,427,891 22.7
2002 (872,368) 1,413,019 22.4
Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 $515,651
1999 540,651
2000 540,651
2001 540,651
2002 540,651
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
No fiscal implication to units of local government is anticipated.
Source: Agencies: 530 Department of Protective and Regulatory Services
LBB Staff: JK ,BB ,NM